LG Group to reshuffle heads of affiliates
By Jun Ji-hye
LG Group is poised to conduct a major reshuffle of the heads of its affiliates as early as this month to bring fresh talent into the organization under the leadership of new Chairman Koo Kwang-mo, industry sources said Monday.
LG Display Vice Chairman Han Sang-beom
According to data from CEO Score, which tracks corporate management, among CEOs of companies affiliated with the nation's five leading business groups, those at LG Group are the oldest on average at 60.9 years. This raises speculation over a possible generational change during the reshuffle.
LG Group has conventionally carried out personnel movements at the end of November, but sources predicted the timing could be moved up this time as Koo, who took the position in June after the late Chairman Koo Bon-moo, his father, passed away in May, appears to be pushing for innovative changes across the group.
There are six vice chairmen in LG Group. Among them, the fates of three were decided after Koo became the head of the group.
LG Household & Health Care Vice Chairman Cha Suk-yong
In July, he decided that LG Uplus Vice Chairman Kwon Young-soo and LG Corp. Vice Chairman Ha Hyun-hwoi should swap positions.
The decision was construed as Koo letting Kwon serve as the No. 2 man of the group, leading its holding company and coming up with blueprints for the future. Kwon is known to have a good understanding of the group having worked at LG Electronics, LG Display, LG Chem and LG Uplus.
On Friday, LG Chem announced Shin Hak-cheol, a vice chairman and executive vice president of 3M, will have the latter post upgraded to CEO, replacing Park Jin-soo, 66, who had served in the position since 2012. Park, who entered LG 42 years ago, will work to foster the younger generation and remain as an adviser to the company after his retirement.
The remaining three vice chairmen whose fates have yet to be decided are LG Display Vice Chairman Han Sang-beom, LG Household & Health Care Vice Chairman Cha Suk-yong and LG Electronics Vice Chairman Jo Seong-jin.
LG Electronics Vice Chairman Jo Seong-jin
Sources said Koo could carry out more surprising personnel reshuffles, given that the appointment of Shin to lead LG Chem marks the first time the nation's leading battery and chemical company has had a CEO from outside the unit since its foundation in 1947.
LG Display Vice Chairman Han, 63, has come under growing pressure to improve the firm's sluggish performance amid uncertainty for the sales of small- and medium-sized OLED panels and falling prices of LCD panels. What remains to be done is resolving the issue of oversupply of LCD panels from Chinese firms, which causes falling prices, and drawing up a detailed strategy to expand sales of OLED panels.
LG Household & Health Care Vice Chairman Cha, 66, achieved a record performance last year and is expected to break it again this year. But market observers are paying keen attention to the group's push for innovation-driven growth as he is the longest-serving CEO at the group _ he has been at the helm of the nation's second-largest cosmetics firm for 14 years.
Eyes are also on whether the group's reform drive will affect the fate of LG Electronics Vice Chairman Jo, 62, who led the success of the firm's washing machines.
“Details of the personnel reshuffle are still unknown,” an LG official said. “As reshuffles had been generally conducted at the end of November or early December, we are also waiting.”